Thin CdTe photovoltaic device efficiencies show significant improvement with the incorporation of a CdSeTe alloy layer deposited between a MgZnO emitter and CdTe absorber. CdTe and CdSeTe/CdTe devices fabricated by close-space sublimation with a total absorber thickness of 1.5 µm are studied using microscopy measurements and show minimal diffusion of Se into the CdTe. Current loss analysis shows that the CdSeTe layer is the primary absorber in the CdSeTe/CdTe structure, and fill factor loss analysis shows that ideality-factor reduction is the dominant mechanism of fill factor loss. Improvement in the CdSeTe/CdTe absorber quality compared to CdTe is also reflected in spectral and time-resolved photoluminescence measurements. Current density vs. voltage measurements show an increase in current density of up to 2 mA/cm2 with the addition of CdSeTe due to a band gap shift from 1.5 to 1.42 eV for CdTe and CdSeTe/CdTe absorbers respectively. Voltage deficit is lower with the incorporation of the CdSeTe layer, corroborated by improved electroluminescence intensity. The addition of CdSeTe into CdTe device structures has increased device efficiencies from 14.7% to 15.6% for absorbers with a total thickness less than two microns.